Provisional Assessement

[Anish Goyal]

A Company is engaged in providing manpower supply service to various corporate. The invoice can be generated by him only after receiving attendance sheet from the service receiver. Receiving attendance sheet some times takes 3 to 4 months from the date of completion of service but as per Service Tax Rules,1994 invoice has to be raised within 30 days of date of completion of service.

In this case, the Department can ask for interest on late billing and payment of service tax. So to avoid interest whether provisional assessment can be done under Rule 6(4) of the Service Tax Rules, 1994.

AI Summary

Completion of service rules determine invoice timing; provisional assessment permits provisional tax payment pending final liability.
Provisional payment under Rule 6(4) allows a taxpayer to notify the Range Superintendent when exact service tax liability cannot be determined; the Superintendent may require provisional payments based on past payments with final assessment and refund or additional payment (with interest) later. The Point of Taxation guidance treats completion as including necessary auxiliary activities enabling invoicing, but ordinary attendance reports are unlikely to qualify as such, limiting reliance on that concession for delayed billing.